|Last Quarterly Update:||10/14/2013|
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Companies in this industry operate spas and wellness centers. Major US companies include destination spa chains Canyon Ranch and Golden Door, massage clinic franchise Massage Envy, day spa franchise Woodhouse Spa, and Steiner Leisure, which operates spas on cruise ships and at resorts and hotels.
Spas and wellness centers generate about $70 billion in worldwide revenue and anchor a $250 billion global spa tourism market. Europe accounts for about a third of the world's spa locations and about 40 percent of worldwide revenue, according to SRI International. The Asia/Pacific region and North America are the next largest markets.
The spa services industry in the US includes about 20,000 facilities with combined annual revenue of about $13 billion, according to the International SPA Association. Growth is driven by discretionary consumer spending.
Demand for spa services is driven by personal income and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, catering to a local market, and delivering a superior customer experience. The US fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major providers of spa services are day spas (about 80 percent of locations); resort and hotel spas (10 percent); and medical spas ...
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